Cardano Rises $56% To Dominate Top 10 Roster
Altcoins such as Cardano (ADA) had a widespread increase in value, similar to the altcoin cycle observed in early November. This cycle occurred when the momentum of Bitcoin slowed down, prompting traders to secure profits and allocate their investments towards smaller cryptocurrencies.
Because of the consistent price of Bitcoin (BTC), which encouraged capital rotation to alternative coins, native tokens associated with layer 1 (L1) blockchains saw the greatest gains on Saturday. Cardano (ADA) was the top performer in the weekend’s top 10 rankings.
According to Coingecko data, ADA price increased by 27% to 64 cents in the last day, for a strong 56.3% growth over the previous seven days. It is the largest increase since August 2022.
With the removal of the three major obstacles—the $0.40, $0.45, and $0.50—investors may begin to experience FOMO, or “fear of missing out,” as they discover ADA to be a compelling investment.
Cardano Bullish Momentum Sparks Optimism
No doubt, Cardano has emerged as one of the most appealing assets available on the cryptocurrency scene, attracting interest as traders fervently hope that the current bullish trend holds or if they are in for a startling letdown.
The money flow index’s (MFI) steady rise indicates that Cardano is firmly in the hands of bulls. For traders, there are currently several prospects for scalping, but in order to maintain investor optimism for a recovery to $1.00, ADA price needs to confirm higher support above $0.64.
Cardano currently trading at $0.622836 level today. Chart: TradingView.com
An indicator that keeps track of money coming into and going out of Cardano is the MFI. Prices usually increase when the inflow volume far exceeds the outflow volume. This could account for the breakout from $0.65, and ADA might try to close the difference to $1 before the end of December if the trend holds steady.
The ADA price has been recognized for its gradual but consistent increase, which has kept the token from seeing a strong surge despite the favorable market sentiment.
Cardano Daily Active Addresses Climb
The forthcoming trade’s outline, however, seems to have altered as traders have been more engaged on the network, which might perhaps support a healthy upsurge. The on-chain statistics shows that the daily active address has increased significantly and reached quarterly highs.
Source: IntoTheBlock
Based on data from IntoTheBlock, around 80% of Cardano wallet addresses are sitting on unrealized profits at the current $0.56 price level.
If the wallet addresses stated above realize their gains, the asset’s price could correct since more people would be inclined to sell.
📈 The notable #crypto market leaders over the past 24 hours are #Cardano (+19%), #Solana (+11%), and #Optimism (+11%). Each is seeing one of their highest social dominance days of 2023. With this implied #FOMO kicking in, proceeding with caution is wise. https://t.co/QvxDrofqJt pic.twitter.com/aUqIDoCLho
— Santiment (@santimentfeed) December 8, 2023
Meanwhile, ADA and a few other popular cryptocurrencies have exploded in social dominance, albeit Bitcoin’s influence is also growing.
According to the Santiment data above, market participants are now more positive about altcoins, particularly Cardano. In tandem with a sharp increase in their costs, social media conversations reached a two-month high, suggesting the onset of FOMO.
Therefore, the next few days might be seen as extremely important, since the fear of FOMO also carries a high risk of rejection once it reaches the critical points.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Shutterstock
